Sales & Marketing in the Horticultural Industry

At the completion of this unit students will be able to:

A. Identify costs related to plant productionB. Identify types of greenhouse businessesC. Determine retail pricesD. Describe effective packagingE. Create a marketing planF. List factors a consumer looks for when purchasing

plantsG. Sell greenhouse plants

A. Identify costs related to plant production

What does it cost to raise a successful crop?

1-Labor-Greenhouses are labor

intensive

For example:-Watering (by hand or automation)-Fertilizing-Insect Control-Potting & Preparing for sale

A. Identify costs related to plant production

What does it cost to raise a successful crop?

2- Cost of Goods-Seed/starts-Soil-Pots-Fertilizer-Insecticide

A. Identify costs related to plant production

What does it cost to raise a successful crop?

3- Operating Expenses-Utilities for heat/cooling-Water-Building/maintaining

greenhouse

A. Identify costs related to plant production

What does it cost to raise a successful crop?

4- Marketing/Advertising-Ad in the yellow pages-Printing signs/flyers/brochures-Newspaper Ads-Billboards

Are all greenhouses the same?

A. Identify types of greenhouse businesses

Wholesale/Commercial • Grow plants to sell at a wholesale

cost• Usually specialize in one or a few

types of plants• Usually produce on a large scale• Must have a tax id # (be a

business) to buy from here

A. Identify types of greenhouse businesses

Wholesale/Commercial A. Identify types of greenhouse businesses

Geothermal heat

MilgroNewcastle, Utah•Poinsettias•Easter Lillies•Mums

•Uses Geothermal Heat

Wholesale/Commercial A. Identify types of greenhouse businesses

Perennial FavoritesLayton, Utah

•All Perennials•Specialize in gallon size pots•Also do some annual hanging baskets

Wholesale/Commercial A. Identify types of greenhouse businesses

Ogden, Utah•Poinsettias•Easter Lillies•Mums•Etc

Wholesale/Commercial A. Identify types of greenhouse businesses

Layton, Utah•Bedding plants•Poinsettias, Lillies, etc

Retail • Buy plant stock from a

wholesaler• Sell at Retail prices to the

customer• Usually carry a variety of plants

A. Identify types of greenhouse businesses

Retail • Only sell plants• They do not grow

them here

A. Identify types of greenhouse businesses

Retail • Only sell plants• They do not grow

them here

A. Identify types of greenhouse businesses

Broker • Middleman• Buy from wholesaler• Sell to Retailer

A. Identify types of greenhouse businesses

C. Determine Retail Prices

How are retail prices

calculated?Usually live plants are marked up using a

3:1 ratioExample:-If it costs $1.50 to a raise a geranium, it will sell for $4.50-If it costs $3.00 to raise an Easter Lilly, it will sell for $9.00

C. Determine Retail Prices

Calculate Cost of raising 1 poinsettiaExpense Group Cost Individual Pot Cost

Poinsettia start $400 $1.00

Pot $80 $0.20

Soil $140 $0.35

Fertilizer $60 (2 bags) $0.15

Insecticide $150 $0.37

Pot Cover & Bow $200 $0.50

Materials Subtotal: $2.57Greenhouse utilities

$2.57 x 3 =Labor

Advertising

Facility Improvements

Grand Total $8.00

3:1 mark up above cost of materials covers misc expenses and provides for a profit

Which would you rather buy?D. Describe effective packaging

Which would you rather buy?D. Describe effective packaging

•Pots should be covered with a holiday foil

•Add a bow to increase appeal

•Remove any dead or miscolored leaves/bracts

How to Create a Marketing Plan

1- Identify an audience2- Determine how you can reach your audience

- Newspaper Ad- Phonebook-Word of mouth-Flyers/brochures-etc

3- Design marketing materials

E. Create a marketing plan

Assignment:

• Create a Marketing Plan for the Floral business of your choice• Make a slogan • Create a sign advertising the

products that are for sale

E. Create a marketing plan

What factors effect your purchase choices?

• Cost• Convenience• Quality•Where it was produced/grown• Etc.

F. List factors a consumer looks for when purchasing plants

List what makes this salesman successful???

•Went to a target audience• Showed the qualities•Wasn’t afraid to ask• Let them try it

G. Sell greenhouse plants

Example SalePattie’s Palm Trees

• Identify potential customer

• Present your product to them

• Display it’s qualities• Make the sale• Arrange details

(pick-up or delivery)

• Follow through!

G. Sell Greenhouse Plants

• Southern Utah Resident• Mexican Fan Palm Tree• Grown in St. George,

already acclimatized, supports local economy

• Make the sale• I’ll deliver it on November

23rd at 10 AM• Follow through!